Exploring car insurance options in Germany? You’ve come to the right place. In this article, we delve into the best car insurance policies available in Germany, providing a detailed comparison of prices and services to guide you. We also offer a comprehensive explanation of the German car insurance system and provide essential tips for handling car accidents in the country. Continue reading to equip yourself with all the necessary information about car insurance in Germany!

Understanding Car Insurance in Germany

In Germany, car insurance is not just a recommendation—it’s a legal requirement. To register a vehicle and obtain a German license plate, you must secure third-party liability insurance. It is mandatory to keep insurance certificates displayed in your vehicle at all times.

Germany boasts the largest vehicle insurance market in Europe and holds a significant position in the global automotive industry. With an evolving market, there are approximately 85 to 90 car insurance companies as of the latest 2025 statistics. Prominent providers include:

AXA
BavariaDirekt
HDI

Unique to Germany, insurance policies are typically attached to the vehicle rather than the driver. This distinction means that multiple drivers can be insured to drive the same vehicle under comprehensive plans, enhancing flexibility for vehicle owners.

Additionally, many German car insurance policies offer an option for insuring a second vehicle. This feature is particularly advantageous for families, allowing parents to include their children’s vehicles under their policy as a secondary insured vehicle.

The insurance sector is regulated by the German Insurance Association (Die Deutschen Versicherer – GDV), with most companies being members. This ensures a standardized level of service and reliability across the board.

Types of Car Insurance in Germany [2025]

Navigating car insurance in Germany can be complex, but understanding the different types available can help you make an informed decision. In Germany, car insurance is categorized into three main types:

Haftpflicht (Liability Insurance)

Liability insurance, also known as third-party insurance, is the minimal legal requirement for all drivers in Germany. This basic insurance covers any damage or injuries your vehicle may cause to other people or their property. It also includes coverage for medical expenses arising from accidents. However, it does not cover any damage to your own vehicle if you are at fault in an accident. Given its limited coverage, many opt for more comprehensive insurance options to ensure broader protection.

Teilkasko (Partial Insurance)

Partial insurance extends beyond basic liability by covering damages from non-collision incidents. This includes natural disasters like earthquakes and floods, and other events such as broken glass, electrical surges, and damage from Marten bites. While more expensive than liability insurance, Teilkasko offers a higher level of coverage, making it a popular choice for those seeking added protection without the full cost of comprehensive insurance.

Vollkasko (Comprehensive Insurance)

Comprehensive insurance provides the most extensive coverage available. It encompasses everything covered by both liability and partial insurance, plus additional protections like acts of vandalism. This type of insurance is ideal for those seeking complete protection, as it covers damages to your own vehicle even if you are responsible for the accident. Although it is the most expensive option, it minimizes financial risk in the event of substantial damage or loss.

Each type of insurance offers different levels of protection and cost, allowing drivers to select the option that best suits their needs and budget. With these choices, motorists in Germany can drive with confidence, knowing they are adequately insured against a wide range of potential incidents.

What Is an eVB Number?

In Germany, registering your vehicle involves several essential steps, one of which includes obtaining an eVB number (Elektronische Versicherungsbestätigung). This number is crucial as it serves as proof of insurance for your vehicle. Issued by your car insurance company, typically via email, the eVB number must be presented at the time of vehicle registration.

When you arrive at the registration office to register your car, along with other necessary documents like your TÜV certificate (Technical Inspection Association certificate) and evidence of car tax payment, you’ll need to provide your eVB number. This number confirms to the registration authorities that your vehicle meets the legal insurance requirements, ensuring that it is covered under at least the minimum mandatory insurance before it hits the road.

The process is designed to streamline vehicle registration by electronically verifying insurance coverage, thus simplifying the administrative procedures and enhancing compliance with vehicle insurance regulations.

Cost of Car Insurance in Germany

The cost of car insurance in Germany is influenced by a variety of factors related to both the driver and the vehicle. Key determinants include the driver’s experience and age, as well as the vehicle’s location, engine size, and overall value. Understanding these factors can help you anticipate the costs and choose the best insurance option for your needs.

Determining Factors of Insurance Costs

Driver’s Age and Experience: Younger drivers, typically under the age of 25, often face higher insurance premiums due to a statistically higher risk of accidents. Conversely, more experienced drivers with clean driving records may benefit from lower rates.
Vehicle Characteristics: The type of vehicle, its engine size, and its value play significant roles in determining insurance costs. High-performance vehicles with larger engines and higher values are usually more expensive to insure.
Geographical Location: Where you live can also impact your insurance premiums. Urban areas, with higher traffic volumes and greater risk of accidents, might carry higher insurance costs compared to rural areas.
Deductibles: The deductible amount—the portion of repair costs you are responsible for before your insurance coverage kicks in—is a crucial factor in determining your overall insurance cost. For instance, if you opt for a €300 deductible and incur €1000 in damages, you will pay €300 out of pocket, and your insurer will cover the remaining €700.

Insurance Types and Costs

Liability Insurance (Haftpflicht): This is the least expensive option as it only covers damages caused to others by the insured vehicle.
Partial Insurance (Teilkasko): This option provides middle-ground coverage, including theft and natural disasters, with deductibles typically around €150.
Comprehensive Insurance (Vollkasko): Offering the most extensive coverage, this option’s deductibles range from €300 to €500. It’s more suitable for newer, more valuable vehicles or for those seeking peace of mind against a wide array of potential damages.

Cost Considerations for Different Vehicles

Older Vehicles: May benefit more from partial insurance due to lower replacement values, making comprehensive insurance unnecessarily expensive.
Newer Vehicles: Generally require comprehensive insurance to cover the full spectrum of potential risks and damages.

By carefully considering these factors, drivers in Germany can better manage their car insurance costs while ensuring adequate coverage based on their specific needs and circumstances.

Which Companies Provide the Cheapest Car Insurance in Germany?

When searching for cost-effective car insurance in Germany, certain companies stand out for their competitive pricing and value-for-money offerings. These companies provide affordable options that do not compromise on coverage, making them popular choices among cost-conscious consumers. Here’s an overview of the insurers known for their economical rates:

CosmosDirekt – Known for offering significant value, CosmosDirekt often leads in price-performance ratios in various German market analyses. Customers can enjoy savings of up to 40% compared to traditional car insurance rates, making it a top choice for budget-savvy drivers.

DA Direkt – This insurer is among the most well-established in Germany and is renowned for its substantial discounts and reliable coverage, making it a go-to for many German car owners looking for both value and security.

AXA – As one of the largest insurance providers in Germany and Europe, AXA stands out for its comprehensive coverage options. Customers have the flexibility to tailor their insurance plans by adding only the services they need, which helps in managing costs without sacrificing essential protections.

Huk24 – Distinguished by its absence from comparison websites and traditional advertising, Huk24 offers competitive rates that often surprise new customers. It is advisable to use their online calculators to directly compare their offerings with those of other insurers for potentially surprising cost benefits.

For those looking to find the best possible deal, utilizing a free comparison tool like Tarifcheck.de can be invaluable. These tools allow you to compare the rates and services of various insurers side by side, ensuring that you find the most suitable car insurance for your needs at the lowest possible price. Exploring these options will help you secure affordable, comprehensive car insurance coverage in Germany.

Is it Possible to Use Foreign Automobile Insurance in Germany?

In Germany, the applicability of foreign automobile insurance largely depends on the driver’s country of origin and their residency status. For drivers from EU/EFTA nations, it is typically permissible to use car insurance obtained in their home country when driving in Germany. This arrangement is facilitated by the EU’s harmonized insurance regulations, which aim to simplify travel and residency across member states.

For drivers from non-EU/EFTA countries, the situation is slightly more complex. They may use their home country’s car insurance in Germany if they possess an international green card. This card serves as proof of insurance and is recognized internationally, providing coverage across multiple countries, including Germany. However, this is generally only suitable for short visits or transitional periods.

Long-term residents in Germany, regardless of their original nationality, are required to obtain a German car insurance policy. This requirement ensures that all residents adhere to local insurance standards, which may offer specific protections tailored to the legal and road conditions in Germany. Securing a local insurance policy not only complies with German laws but also often provides more comprehensive coverage suited to the specific needs of drivers in Germany.

What are the Pros and Cons of Car Insurance in Germany?

Navigating car insurance in Germany can offer distinct advantages and present certain challenges. Understanding these can help you make more informed decisions regarding your car insurance needs. Here’s a breakdown of the pros and cons:

Pros of Car Insurance in Germany

Diverse Coverage Options: Germany offers a broad spectrum of car insurance policies, ranging from basic liability insurance to comprehensive plans. This variety allows you to select coverage that fits your specific requirements and budget.
Competitive Premiums: Compared to many other countries, car insurance premiums in Germany are relatively low. This affordability makes it a worthwhile investment for most drivers.
Exceptional Customer Service: German insurance companies are reputed for their strong customer support. Whether you need assistance with claims, understanding your policy, or handling accidents, you can expect reliable and helpful service.
Flexible Payment Options: Many insurers provide flexible payment terms, including monthly, quarterly, or annual plans, which can alleviate the financial burden of upfront payments.

Cons of Car Insurance in Germany

Limited Discount Opportunities: Unlike in some countries, where numerous discounts can significantly reduce premiums, the availability and variety of discounts in Germany are somewhat restricted.
Complex Regulations: The intricacies of German car insurance policies and laws can be challenging to grasp. This complexity might hinder your ability to fully understand eligibility for discounts or specific coverages.

Cancelling Car Insurance in Germany

To manage your car insurance effectively, it’s important to know about cancellation policies:

Annual Renewal and Cancellation: Car insurance policies in Germany automatically renew each year. If you wish to switch providers or cancel your policy without incurring fees, you must typically cancel by November 30th of the current year.
Using Comparison Tools: To ensure you are getting the best deal, it is advisable to regularly compare insurance rates, especially around November. Tools like Verivox or Tarifcheck can be invaluable for this purpose.
Upon Vehicle Sale: If you sell your vehicle, your car insurance policy will be automatically cancelled. This immediate cancellation frees you from having to continue payments for a car you no longer own.

Understanding these aspects will help you navigate car insurance in Germany more effectively, ensuring that you choose the best option for your circumstances and manage your policy appropriately.